The sun is shining, the weather is hot and the trading week is finally over! Wall Street did not disappoint on Friday, offering a ton of news for investors to digest. Streaming actions were hit by an analyst, We work agreed to go public again and Mia Khalifa talked about the main drivers. So, what else did the stock market do today? Dive with InvestorPlace below.
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To begin with, all the major indexes ended the day in green. O S&P 500 gained 1.66% while the Dow Jones Industrial Average gained 1.39%. O Nasdaq Compound gained 1.24%.
So, what else did the stock market do today? Take a look at these three main stories.
What did the stock market do today? Look at China.
The sale of Chinese shares continued today, as US-China relations worsened further.
Important news is that, earlier this week, the US Securities and Exchange Commission adopted measures under the Foreign Holding Companies Liability Act. In other words, regulators are willing to implement and enforce legislation. The bill calls for the closure of foreign companies that do not meet US auditing standards for a certain period of time and requires companies to disclose government ownership and oversight. Because many investors see this as a target for Chinese companies, stocks like iQiyi (NASDAQ:IQ), Tencent Music Entertainment (NYSE:TME) and Baidu (NASDAQ:BIDU) continue to fall.
To make matters worse, the news came this morning that Goldman Sachs was facilitating large block sales of Chinese shares. BIDU’s and TME’s shares fell with the news, as well as Vipshop Holdings (NYSE:VIPS) Cold commercial relations and threats of delisting are taking these actions down.
But, as investors have learned, the situation works both ways. As the team in Morning drink reported, Chinese influencers are burning Nike (NYSE:NKE) online tennis and boycotts H&M products. Comments from companies on allegations of forced labor in Xinjiang are driving the setback. Something to watch: How will current events affect the companies behind the Beijing Olympics in 2022? The names in question include Visa (NYSE:V) and Airbnb (NASDAQ:ABNB)
One more note: Chinese education actions were also highlighted, generating big winners and the biggest losers. Elite Education (NASDAQ:EEIQ) made its debut on Wall Street and saw shares gain almost 290%. Other actions like New Eastern Education (NYSE:EDU) were less fortunate, with the shares being sold today. Investors can attribute the discrepancy to new policies in China that limit which students are eligible for online education only.
JPMorgan called for rising remittance stocks
JPMorgan analysts have advised their clients to buy oil, energy and remittance stocks to protect their portfolios. Investors did just that on Friday, accumulating important names like American Nordic Tanks (NYSE:NAT) and Frontline (NYSE:FRO) With container ship Ever Given still blocking the Suez Canal, economists are calling for toilet paper shortages and the chip crisis to worsen.
For transport stocks, the blockade may be a silver lining in the short term.
As Nordic American wrote to its shareholders, an ongoing blockade will require its fleet of Suezmax tankers to be redirected. In the coming days, the company plans to divert these oil tankers across Africa, reducing the number of trips that its fleet can take. Less travel means reduced transport capacity and reduced transport capacity means higher freight rates. In the short term, higher freight rates mean higher profits.
Investors were doing this math today, driving NAT’s shares to gain nearly 15%. While it is a short-term bump, it can help ease the pain of another round of consumer goods shortages and supply chain stress. And, as Chris MacDonald wrote, the longer Ever Given stays in jail, the more attractive remittance stocks become.
Remember that Tesla $ 3,000 price target?
Teens and pre-teens have influencers like Addison Rae, Loren Gray and Charli D’Amelio to be inspired. Retail investors have influencers like Elon Musk, Dave Portnoy … and Cathie Wood.
While the Wall Street Journal wrote recently, these stock market influencers easily sell stocks in the same way that other influencers promote the latest skinny teas or facial soaps. When Musk touched the GameStop (NYSE:GME) frenzy through a simple tweet, shares skyrocketed. Retail investors follow these figures fervently, on social media and in their portfolios.
Madeira stands out. She’s not just a social media persona – she’s behind the icon Ark Invest. Its exchange-traded funds paved the way with investments in Tesla (NASDAQ:TSLA), Bitcoin (CCC:BTC) and on topics such as gene editing and space exploration. Retail investors subscribe to daily updates on what Ark buys and sells. That’s why, when she set a $ 3,000 price target for Tesla’s stock, Wall Street realized.
Of course, Tesla is more than the leading manufacturer of electric vehicles. It is a technology company with cutting-edge innovations in EV batteries, autonomous driving, solar energy and residential energy storage. But how InvestorPlace Market analyst Tom Yeung asks, are Tesla’s shares really worth $ 3,000? And what does it mean to set a very high price target?
Yeung warns that investors should see their attractive price targets as marketing tactics for Ark and its exchange-traded funds. Symbols of Wall Street and its elite. As he sums it up: “Buy some TSLA shares if you want. But be sure to leave room for investments that are beyond the reach of the Wall Street elite. “
As of the date of publication, Sarah Smith did not (directly or indirectly) hold any positions in the securities mentioned in this article.
Sarah Smith is a producer of web content at InvestorPlace.com.